Which of the following is true with the imposition of the price control or price ceiling? A. the consumers derive lower consumer surplus in terms of lower prices B. the producers decide to sell more because the price is attractive C. price control causes an excess supply D. all are true E. none is true Which of the following is true with the imposition of the price support or price floor? A. the consumer surplus is reduced when they buy at a higher price B. the producer surplus is increased when they receive a higher price for their produce C. price support causes an excess supply D. all are true E. none is true
Which of the following is true with the imposition of the price control or price ceiling? A. the consumers derive lower consumer surplus in terms of lower prices B. the producers decide to sell more because the price is attractive C. price control causes an excess supply D. all are true E. none is true Which of the following is true with the imposition of the price support or price floor? A. the consumer surplus is reduced when they buy at a higher price B. the producer surplus is increased when they receive a higher price for their produce C. price support causes an excess supply D. all are true E. none is true
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following is true with the imposition of the price control or price ceiling ?
A. the consumers derive lower consumer surplus in terms of lower prices
B. the producers decide to sell more because the price is attractive
C. price control causes an excess supply
D. all are true
E. none is true
Which of the following is true with the imposition of the price support or price floor ?
A. the consumer surplus is reduced when they buy at a higher price
B. the producer surplus is increased when they receive a higher price for their produce
C. price support causes an excess supply
D. all are true
E. none is true
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